ANIMP Energy Industry Market Trends 2020

Daslav Brkic, Consultant, DB Business Development
Giacomo Franchini, Director,

Webinar, Sezione
Componentistica d’Impianto ANIMP
November 26th, 2020
Energy Industry
Global Markets Forecast
2020
ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 1

Contributors
Luigi Coltelletti Simona Gauglio
Business Development & Marketing Head of Commercial Support Paolo Ruggeri
Director Marketing New Units New Units Sales Vice President, Nuovo Pignone
luigi.coltelletti@ansaldoenergia.com simona.gauglio@ansaldoenergia.com paolo.ruggeri@bhge.com
www.ansaldoenergia.com www.ansaldoenergia.com www.bakerhughes.com
DBBD
Michele Stangarone Stefano Protogene Daslav Brkic
President, Nuovo Pignone Chief Commercial Officer Business Development Consultant
michele.stangarone@bhge.com stefano.protogene@bonatti.it daslav@dbbd.eu
www.bakerhughes.com www.bonattinternational.com
Fabrizio Botta
Michele Russo Oscar Guerra Director of Global Strategy & Sales - Alberto Ribolla
Group Business Regions Coordination Specialist Chief Executive Officer E&C Onshore Division Vice President
michele.russo@mairetecnimont.it oscar.guerra@rosetti.it fabrizio.botta@saipem.com a.ribolla@siirtecnigi.com
www.mairetecnimont.com www.rosetti.it www.saipem.com www.siirtecnigi.com
Stefano Donzelli
Giacomo Franchini Mauro Montefiore Francesco Cammarata Director of Business Development
Director Chief Business Officer VP Business Development North Africa & East MED Southern Europe, Russia & Caspian
giacomo.franchini@supplhi.com mmontefiore@technip.com Francesco.cammarata@technip.com stefano.donzelli@woodplc.com
www.supplhi.com www.technipfmc.com www.technipfmc.com www.woodplc.com

Agenda
Market Context
Outlook on Investments
Top10 Trends in Supply Chain

Last year we forecast:
“In the medium term, we will be facing major energy transition turning points,
but major uncertainties remain on transition breath and speed”

Some forecasters expected the Primary Energy Demand to plateau around 2030 -
and perhaps fall, thereafter
McKinsey Global Energy Outlook 2019
Source: McKinsey, IEA ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 5
Today, under many scenarios, many believe that in a post-COVID world,
global energy demand growth could slow down…..and even start levelling off
Source: DNV GL Energy Outlook 2020 ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 6
Today, BP and several other energy majors also say the same …
Source: BP Energy Outlook 2020 reviewed by

Simon Evans, Carbon Brief ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 7
Source: McKinsey 2020 ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 8
Most recently there is growing optimism that
full decarbonization could be on the agenda
Source: Climate Action Tracker, Bloomberg Green ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 9
Significantly, BP and several other oil majors concede that oil demand is at the peak
... and could plummet
Source: BP Energy Outlook 2020, Bloomberg Green ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 10
With the exception of OPEC, most other opinion makers agree with this view -
But future emissions policies are key
Oil production and refining are starting to be managed as a ‘mature industry’

Outlook for natural gas - a much longer time-horizon
Natural gas consumption

Bcm
6000
5000
4000
3000
2000
Rapid
1000 Net Zero
Business-as-usual
0
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Source: BP Energy Outlook 2020 ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 12
LNG demand to continue its growth path
But it all depends on Asian choices
Source: Wood Mackenzie Aug20 ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 13
LNG applications continue to broaden
Costa Smeralda first bunkering with LNG

Rapid electrification to continue, all growth and some coal replacement coming
from renewables
Gas to continue as a transition fuel

CAPEX investments in Upstream projects should resume over the next years –
but then plateau in the medium-term
Source: Wood Mackenzie Lens Upstream ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 16
Flat oil pricing in the near future

But longer term, new technologies related to the energy transition will win the day

Overall global energy investments should increase under any scenario
- Big danger of underinvestment
Source: IEA World Energy Outlook 2020 ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 19
Photovoltaic systems to continue their growth
Source: IEA Renewables 2020 ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 20
CAPEX investments in Wind Offshore
21
Source: Wood Mackenzie Power & Renewables, Set20 ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 21
Today the financial performance of new energy companies is better than that of
traditional ones ...
Source: IEA Renewables 2020 ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 22
… and they are better liked by the financial institutions
Source: IEEFA analysis, RenewEconomy Oct20 ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 23
Beyond solar and wind:
Hydrogen
Source: BloombergNEF ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 24

The utilization of hydrogen is expected to grow greatly
(vs. today’s levels)
“Low-carbon hydrogen production,2010-2030, historical, announced….”
Source: IEA 2020 ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 25
The future of hydrogen rests on cost reduction …
… and system safety assurances

Numerous H2 support policies are under development and
implementation worldwide

One of many examples:
BP Orsted 50 MW demo power plant based on green hydrogen
Source: BP ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 28

H2: Perhaps also in the most ‘unexpected’ applications
Source: Bloomberg Nov. 2020 ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 29
In Europe, EVs are substituting diesel vehicles
Source: The Driven, Nov20 ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 30
The days of internal combustion engines could be over ...
TESLA Y factory in Shanghai

Source: The Driven, Nov, 2020
Source: RenewEnergy July 2020

... thanks to major technology breakthroughs in batteries and IT -
also for stationary applications

Conclusions on Market Context
▪ Traditional investments into the Oil&Gas industry

should resume after COVID, but then plateau
▪ The energy transition is a reality, but with

major uncertainties regarding:
➢ Timing
➢ Exact direction
➢ Quantification
▪ Most medium-term opportunities to be in

new market applications
• Key factors will remain:

➢ Governments and policies
➢ Technology development
➢ Public opinion
Varied portfolios, active search for technology breakthroughs,

spread-the-bets approaches … could all be the keys to success
Agenda
Market Context

A resilient Oil&Gas industry
Decarbonization requires CAPEX in Oil&Gas Oil&Gas Co. have enacted Perception of under-
significant shifts is still needed to meet survival measures to investment with
towards renewables energy demand COVID-19 expected rebound
In transition scenarios, renewables Need to continuously replace the The economic activity lockdown and Since the beginning of COVID19,
to continue to grow rapidly but depletion of the already block of mobility in 1Q-2Q are Governments in G20 countries
there is still a role for operating fields (on average 6% triggering an unprecedented oil have committed at least $421B to
hydrocarbons, albeit per annum). demand drop with a consequent supporting different energy types,
diminished. oil price crash. out of which 55% to Fossil Fuels
Demand scenario
Renewables
-25%
New supply
required
CAPEX
Hydro- Oil Co.
carbons CAPEX
Production from Oil Co.
current Oil&Gas fields
2020 2040 2020 2040 2020 2020 2020 2023

pre-COVID during-COVID during-COVID
Source: SupplHi analysis, energypolicytracker.org ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 35
Quarterly evolution of Oil&Gas project awards
Oil&Gas Top Projects awarded, Global ($ Billion)
2014 2015 2016 2017 2018 2019 2020

UPSTREAM
29 27
26
13 11
8 8
5
45
MIDSTREAM
40
22
16
10
8
2 2
INCL. FERTILIZERS
DOWNSTREAM,
Note: not considering Exploration and Drilling CAPEX

Source: SupplHi Market Compass
Oil&Gas Plant CAPEX evolution
Distribution of CAPEX for Oil&Gas Top Projects, Global (EUR Billion)
A portion of 2019’s award has
been put “On Hold”, with
398 expected re-start in 2020-2023
107$/barrel
Oil Brent 351 344 349

price
304
95 105
119 104
70
242
84
73
126
119 120 122
56
195
115 130 120 122

113
11$/barrel
2014 2015 2016 2017 2018 2019 2020E 2021F 2022F 2023F

Source: SupplHi Market Compass ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 37
Oil&Gas CAPEX sees high relevance of Downstream in APAC and ME,
while strong LNG investments in North America
Estimate of the Oil&Gas (incl. Fertilizers) Plant CAPEX - 2019-2024, Billion €

Source: SupplHi Market Compass ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 38
The Oil&Gas industry is “riding” multiple CAPEX waves
Significant CAPEX in new Oil & Gas

UPSTREAM
Upstream CAPEX is experiencing a 30% production will be still required to sustain

drop in 2020/2021 depletion and continuous demand, even in a
fast energy transition scenario
MIDSTREAM
Current wave of LNG capacity Gas to support the energy transition, with a
additions coming to an end, with potential new wave of LNG investments to be
COVID-19 delaying LNG CAPEX started after 2022/2023
INCL. FERTILIZERS
Continued momentum for Downstream

DOWNSTREAM,
Petchem supply was already outpacing

(large greenfield & brownfield projects –
demand pre-COVID (17% petrochemicals
mainly biorefineries), even if at slower pace,
price decline in 2019) and oversupply will be
also to sustain local economies’
exacerbated by global economy contraction
development
Source: SupplHi analysis ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 39
Investment in Power in 2020 has seen higher reduction in Grids and Solar
Global Power investment
Investment in solar PV and wind has held up, even as costs have come down, but spending on
other aspects of a secure & sustainable system – grids, storage, flexibility – are lagging behind
Source: IEA ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 40
Clean Energy CAPEX in 2020 has been resilient and increased its share
Global investment in clean energy and efficiency, and share in total investment

Under the IEA’s Stated Policies Scenario, energy supply investment would rise
to nearly $1.3 trillion within 10 years
Global Power CAPEX Sustainable Development
Scenario (SDS)

Agenda
Market Context

Top 10 Trends in Plant Engineering Supply Chain, 2020
1 Energy Transition 6 Sustainability
2 CAPEX Challenge 7 Digital
3 In Country Value 8 Project Management
4 Green & Circular 9 New Talents
5 Standardization 10 Political relevance

Relative change in relevance from previous year
The new reference standard 1
Today, with ANIMP online
CO2 Global emissions from the combustion of coal, gas, oil, and other fuels, attendance, we are
Currently driven by:
including industrial waste and non-renewable municipal waste. saving 7,2 tonnes of CO2
Metric gigatons (GT) 30% China
15% US
9% Europe
7% India
25% Electricity
23% Agriculture
21% Industry
14% Transportation
6% Buildings
Are we ready to measure in terms of CO2 all our activities?

Supply Chain’s CO2 footprint estimation 1
CO2 of a Plant in industrial B2B
Development phase (EPC-I): 2-5 years 20+ years
Raw Sub- Plant Manufacturing Project Construction / Operations

materials components Logistics processes Logistics Installation phase
Procurement-based “upstream” manufacturing by Vendors. Location of the Installation mainly Each Technology
manufacturing plant relevant for Licensor has its
Carbon footprint of each production line, (for distance from Offshore activities own internal
by category of supply. destination) (e.g. naval estimation model
spread, ...) for CO2
CO2 Estimation
Engine
Carbon footprint measurement methodology

that identifies actions to reduce the footprint
of the entire supply chain
Is your product & service portfolio, GHG-ready? 1
Most demanded categories of supply - NOT EXHAUSTIVE
EQUIPMENT
• CO2 Capture packages / systems
• Dedusting Filters
• Ash Removal systems
• Water Treatment systems
• Electrolysers
Carbon Removal • Fuel Cells
• …
&
SERVICES
• Environmental Monitoring
Carbon Avoidance
• Environmental Product Declaration (EPD) consulting
• Life Cycle Assessment (LCA) consulting
• Carbon Credit Trading / Carbon Offset Management
• Logistics Route Optimization Software
• GHG Monitoring Software
• Sustainability Reporting Software
• …
Source: SupplHi Vendor Management platform ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 47
Costs to remain under control, efficiency is a must 2
Cost Index (2000=100)
UCCI (Upstream This is what the market is able to

Capital Costs index) pay to let projects fly.
DCCI (Downstream
Capital Costs index) Costs now cannot
increase back.
minimum efficiency
In 2021-2022 - after the

delivery of the current backlog
- the supply chain will be
challenged by the impact of
less CAPEX awarded in 2020
and by project delays.
2006
2000
2001
2002
2003
2004
2005
2007
2008
2009
2010
2012
2013
2014
2015
2016
2017
2018
2019
2020
2011
Source: IHS Markit ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 48
“In Country Value” makes you win or lose contracts 3
SupplHi pilot on Industry-shared evaluation
Example: Critical equipment
(out of ~200 observations)
Country of the Vendor

# of total
Quality
Delivery
Behaviour
Overall • Evolution, from “Local Content”
players time Score
to “In Country Value”
European Country 215 4.3 4.1 3.7 4.0
• Contractors are the first ones
Asian Country 128 3.1 3.3 2.7 3.2 subject to ICV Certificates - ICV
regulations differ from country to
North American 72 3.2 2.8 2.8 3.2
country, requiring tailored
Asian Country 61 2.8 3.3 2.5 2.9 approach
Russia 45 4.2 3.2 4.1 4.0

• Local supply chains grew in
number and competences and
Saudi Arabia 43 3.9 4.1 3.4 3.8 they do deliver
UAE 36 4.1 3.2 3.7 3.5 • How to transform ICV into an
opportunity?
Asian Country 32 3.3 2.9 3.2 3.1
Source: SupplHi Vendor Management platform analysis ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 49
Green Value Chains require a different business model 4
by End-Users and Contractors
Traditional “silos” industrial model

• The green industry is creating new
opportunities (including the infrastructure
Gas Utility Industrial Recycle
required to support the “core”): Co. Co. Co. Co.
o Circular Economy
Contractor
o Green Chemistry
o Green and Blue Hydrogen Smaller modular plants
that connect the needs of multiple
• The new Green Value Chains do not support Contractor
actors, at a more local level
the traditional “silos” industrial model
o issues in evaluations of benefits It’s a “different” complexity,
Contractor requiring a new organization
o focus on permitting and local presence
o co-investment / financing by
Contractor?
Green Hydrogen CAPEX will not immediately drive industry backlog, yet 4
Plant CAPEX, 2019-2023, Billion €
• 50 green hydrogen projects under
1.729 development worldwide
o large scale facilities starting up in 2022-23 and
2025-26 - mainly in Australia and Europe
(announced €470 billion toward hydrogen
infrastructure)
o Projects mainly at an early stage (just 14
having started construction and 34 at a study or
MOU stage), with many that could face delays
Including “grey
hydrogen” produced
due to uncertain financing and complex JVs
from steam methane
reforming (SMR10) • Dedicated M&A wave targeting technology
70 owners (e.g. fuel cells, ...)
OVERALL GREEN • Future relevance of Hydrogen storage CAPEX

OIL&GAS HYDROGEN (e.g. salt caverns or depleted gas fields)
Source: SupplHi analysis; Institute for Energy
Economics and Financial Analysis (IEEFA) ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 51
Standardization is Innovation 5
Traditional approach Future of Energy Standardization is

inevitable
• New way of working
(the knowledge of the
different company specs
has been a competitive
Al main IOCs and NOCs Energy Transition advantage, ...)
are replacing specs and requires smaller and • Fast adopters will be the
datasheets, even on more replicable (“faster”)
ones benefiting the most
already started projects plants
• How to ride the
standardization?
Multi-year creation of Native & Fast
a new standard library
Sustainability is not just a hype in our articulated Supply Chain 6
Environment, Social, Governance (ESG)
Stakeholders (Lenders, communities …) principles, practices, standards, metrics and
requirements are:
End-Users
End-Users
End-Users o becoming an award factor in tenders
o a pass-through to the entire value chain
ESG Requirements
Contractors
Contractors
Contractors
Supply Chain
repeating the case of “Quality systems”,
ESG Issue
30 years later
o entering the Banking system
Sub-Contractor
Sub-Contractor
Sub-Contractor
Vendor …
Vendor 4
Vendor 5
Vendor 6
Vendor 7
Vendor 8
1
If you can't measure it,

you can't improve it.
Sub-Vendor …
Sub-Vendor C
Sub-Vendor D
Sub-Vendor A
Sub-Vendor B
Sub-Vendor E
Sir William Thomson

Inventor of the Kelvin international
system of absolute temperature
Industry-shared guideline for ESG sustainability assessment 6
of plant engineering supply chain
Guideline for industry-shared assessment of ESG Open source and

ESG SUSTAINABILITY ASSESSMENT WORKGROUP
Sustainability in the Supply Chain of the Energy industry free to join for
continuous
review
Sustainability Managers of:
The workgroup is always open to other players to join the discussion
Solution
providers

Digital in Plant Engineering delivers speed, compliance and costs savings 7
EXPECTATION REALITY
Digital in Plant Engineering is mainly

Innovation is a process of creative focused on process improvement:
destruction that revolutionizes the
• Speed of interface among functions
economic structure.
• Cost savings on selected activities
• more Compliance
Currently:
• all EPC players are performing Digital
Programs looking for incremental
improvements to their operations
• End-Users are the actors that can benefit
J. Schumpeter, 1939 the most in terms of operational savings
in their plants
Beyond Digital, generalized under-investment in R&D 7
Annual R&D investments of Italian companies,

average 2014-2018
€1,5 Billion
Where is R&D on:

• New materials? €0,7 Billion
• New applications? VS
• New business models?
R&D investments by R&D investments in

Plant Engineering Co. Pharma industry
% on Sales 0,4% 4,8%

Note: considering R&D as published on annual financial statements
Source: Cribis D&B and SupplHi analysis ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 56
Project Management to manage the arising complexity 8
How to apply Amazon’s … to a €1 Billion

• Decisions will move faster
Two-Pizza Team Rule … project in Energy?
• Specs will be more
No matter how large your company gets, The cost of coordinating, communicating, and
individual teams shouldn’t be larger than what relating with each other snowballs to such a standardized, and the supply
two pizzas can feed degree that it lowers individual and team
(5-10 people max) productivity chain will be increasingly local
• Execution will be even more
Large “American” decentralized with larger use
pizzas of outsourcing to specialists,
and support activities delivered
as-a-Service
Which tools
for a PM?
How to attract the next talents? 9
Survey by EY: How appealing to you Generation Z will be looking for
is a career in the Oil & Gas industry?
businesses with:
100% 100% o a purpose (other than making money)
23% o international exposure
39%
o entrepreneurial values (72% of teens
21% say they want to start their own
business)
11% 23% Very unappealing
o continuous self-education (33%
26%
Somewhat unappealing watch lessons online, 20% read
13%
I am not sure textbooks on tablets, and 32% work
20% Somewhat appealing
with classmates online)
18%
6% Very appealing How to cater these values to
Millennials
(20-35 ys)
Gen Z
(16-19 ys)
future professionals?
Source: EY ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 58
How to let emerge the relevance of our industry? 10
Value of Production, 2018 €243 B and 1,2 million

companies with “retail” €190 B
€132 B
€78 B €93 B
€27 B
Fashion Automotive Agri-food Plant

Museums
& Luxury “industry” Engineering
Incidence
<2% 5% 6% 8% 11%
on total GDP
358 museums 82k companies 5,7k companies 7k companies 5k companies
# employees 117k 500k 250k 385k 332k Italy (+277k abroad)

Source: analysis by Cribis D&B and SupplHi on Cribis D&B, BCG, Quattroruote, AlixPartners and ICE public data. Note: not considering Italian End-Users (Eni, Enel, …)
Roles in our supply chain
END-USER
Engine for innovation

CONTRACTOR
More collaboration
LARGE OEM / INTEGRATOR
SUB-CONTRACTOR / PACKAGER
More specialization
COMPONENT MANUFACTURER / SERVICE PROVIDER
More risks, more innovation

SUB-COMPONENT MANUFACTURER / SEMI-FINISHED WORKS
RAW MATERIALS

Webinar, Sezione
Componentistica d’Impianto ANIMP
November 26th, 2020
Thank you for your attention

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Daslav Brkic, Consultant, DB Business Development

Giacomo Franchini, Director,

November 26th, 2020

ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 1

ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 2

Top10 Trends in Supply Chain

ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 3

ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 4

McKinsey Global Energy Outlook 2019

Source: BP Energy Outlook 2020 reviewed by

Oil production and refining are starting to be managed as a ‘mature industry’

Natural gas consumption

ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 14

ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 15

ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 17

ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 18

Source: BloombergNEF ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 24

… and system safety assurances

ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 27

Source: BP ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 28

TESLA Y factory in Shanghai

Source: RenewEnergy July 2020

ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 31

ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 32

▪ Traditional investments into the Oil&Gas industry

▪ The energy transition is a reality, but with

▪ Most medium-term opportunities to be in

• Key factors will remain:

Varied portfolios, active search for technology breakthroughs,

Top10 Trends in Supply Chain

ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 34

2020 2040 2020 2040 2020 2020 2020 2023

2014 2015 2016 2017 2018 2019 2020

Note: not considering Exploration and Drilling CAPEX

Oil Brent 351 344 349

115 130 120 122

Note: not considering Exploration and Drilling CAPEX

Note: not considering Exploration and Drilling CAPEX

Significant CAPEX in new Oil & Gas

Upstream CAPEX is experiencing a 30% production will be still required to sustain

Continued momentum for Downstream

Petchem supply was already outpacing

Source: IEA ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 41

Source: IEA ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 42

Top10 Trends in Supply Chain

ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 43

1 Energy Transition 6 Sustainability

2 CAPEX Challenge 7 Digital

3 In Country Value 8 Project Management

4 Green & Circular 9 New Talents

5 Standardization 10 Political relevance

Are we ready to measure in terms of CO2 all our activities?

Source: IEA ENERGY INDUSTRY GLOBAL MARKETS FORECAST, NOVEMBER 2020 45

CO2 of a Plant in industrial B2B

Development phase (EPC-I): 2-5 years 20+ years

Raw Sub- Plant Manufacturing Project Construction / Operations

Carbon footprint measurement methodology

UCCI (Upstream This is what the market is able to

In 2021-2022 - after the

Country of the Vendor

Russia 45 4.2 3.2 4.1 4.0

Traditional “silos” industrial model